Having a credit score of 740 or higher — or excellent credit — works in your favor if you’re looking for a business loan. But when it comes to business financing, your credit score isn’t as important as it would be with a personal loan. Banks typically weigh cash flow and your time in business over the owner’s credit scores.
How we picked these best business lenders
We compared the rates, terms and different needs of business owners who are in the market for financing — with particular attention to low rates that excellent credit might help you win. We included a range of types of lenders and a connection service to meet the needs of different types of businesses.
Lendio is an online connection service that can make your search for an online loan a lot easier. By filling out its online form, you can find out what rates and terms you might qualify for with its over 300 partner lenders. It cuts down on the time you would otherwise spend researching and prequalifying with multiple lenders.
Pros
Network of over 300 lenders
Saves time researching loans
Rates starting at a low 6% APR
Cons
Doesn&rsquo
t directly fund loan
Might receive lots of marketing materials
Loan amount
$1,000 – $5,000,000
APR
Varies by lender
Min. Credit Score
500
Loan term
3 months to 25 years
Requirements
Operate business in US or Canada for 6 months or more, have a business bank account, minimum 500 personal credit score, at least $20,000 in monthly revenue
LendingClub could be a good option if you have excellent credit but have a business that’s still in the startup phase. Especially if you have low profits. Your business only needs to be around for one year and have a low $50,000 in annual sales to qualify. But rates and fees are a little higher than you might get with a direct online lender. And the turnaround can take a few weeks.
Pros
Only requires one year in business
Low revenue requirement of $50,000
Loans starting at a low $5,000
Cons
High APRs of 12.15% to 29.97%
Flat 5.99% origination fee for all borrowers
Collateral required on loans over $100,000
Loan amount
$5,000 – $500,000
APR
12.15% to 29.97%
Min. Credit Score
580
Loan term
12 to 60 months
Requirements
12+ months in business, $50,000+ in annual sales, no bankruptcies or tax liens, at least 20% ownership of the business, fair personal credit score or better
Loan amount
$5,000 – $500,000
APR
12.15% to 29.97%
Min. Credit Score
580
Best for SBA loans
SmartBiz business loans
4.5
★★★★★
Finder score
SmartBiz doesn't fund these government-backed loans directly — but it makes the process a lot easier. It works with a network of preferred lenders and offers packaging services so you don’t have to fill out the time-consuming application on your own. But you’ll have to pay a referral fee for its services. And SBA loans are generally for big projects. You need to borrow at least $30,000 to qualify.
Pros
Referral and packaging services
Turnaround of a few weeks, rather than months
Only works with preferred lenders
Cons
Referral and packaging fee if approved
No loans under $30,000
Not as fast as nongovernment options
Loan amount
$30,000 – $500,000
APR
Prime Rate, plus 2.75% to 4.75%
Min. Credit Score
650
Loan term
10 years
Requirements
650+ credit score, 2+ years in business, $50,000+ in annual revenue, no bankruptcies or foreclosures in past 3 years
Short-term loans typically come with astronomical costs. But Rapid Finance offers discounted rates and fees to borrowers with good or excellent credit. And as its name suggests, it’s fast. You can get funded as soon as the next business day. But it may require daily repayments on products like a merchant cash advance. And it has a higher-than-average time in business requirement of two years, compared to similar lenders.
Lake Michigan Credit Union offers some of the lowest rates across the board — ranging from 5% to 7% APR. It's one of the few credit unions that offers financing in all 50 states while also providing the personalized service you might get if you went to a credit union in person. The main drawbacks are that you can’t borrow more than $50,000, and it might take longer than applying with an online lender.
Pros
Low APR of 5% to 7%
Loan customized to business&rsquo
s needs
Available in all 50 states
Cons
No online application
No loans over $50,000
Little information available online
Loan amount
Up to $50,000
APR
5% to 7%
Min. Credit Score
700
Loan term
Up to 240 months
Requirements
Personal credit score of 700+, established business, willing to become a member
Loan amount
Up to $50,000
APR
5% to 7%
Min. Credit Score
700
Best for bank loans
PNC Bank business loans
2.5
★★★★★
Finder score
PNC Bank is a regional bank and an SBA-preferred lender that offers a simpler bank loan than you might find elsewhere. You can apply online if you already have an account and easily manage your repayments without leaving home. Like with most banks, PNC is best for starting a long-term banking relationship rather than getting one-off financing. Loans start at a high $20,000. And you likely won’t get funded within days, the way you might with an online lender.
Pros
Online application available to current customers
SBA-preferred lender
Loans under $100,000 are unsecured
Cons
No loans under $20,000
Must be customer to apply online
No information about costs online
Loan amount
$20,000 – $100,000
APR
Not stated
Loan term
Up to 84 months
Requirements
Business is 3+ years old, meet revenue standards, no bankruptcy claims, no outstanding financial obligations
Loan amount
$20,000 – $100,000
APR
Not stated
The best bank loan for excellent credit might be your local bank
Community banks can be a great option for small business owners that want to develop a strong, long-term relationship with a lender. Community bank loan officers are experts in your area’s business marketplace and can become a partner in growing and developing your business safely.Â
It might take a few weeks to fund your first loan. But once they get to know your business, your lender should learn to anticipate your business’s financing needs so you never need an emergency loan.
Summary of best business loans for excellent credit
Lender
Minimum credit score
Best for …
Finder Rating
What sets it apart
SmartBiz
650
SBA loans
★★★★★
4.3 / 5.0
A network of SBA-preferred lenders and packaging services to simplify the application process.
PNC Bank
Bank loans
★★★★★
2.53 / 5.0
Online accessibility with the option for an in-person application.
Lake Michigan Credit Union
700
Credit union financing
★★★★★
3.4 / 5.0
Low rates and a nationwide reach.
LendingClub
580
Businesses in the startup phase
★★★★★
4.5 / 5.0
Low time in business and revenue requirements.
Rapid Finance
600
Short-term financing
★★★★★
3.74 / 5.0
Rate discounts for good and excellent credit.
Lendio
500
Comparing multiple offers
★★★★★
4.79 / 5.0
Over 300 partner providers in its network.
Other business loans you can apply for today
See what else is out there by selecting ranges for the amount you’d like to borrow, revenue, time and business and the excellent credit score range.
The best lender for your business depends on several factors, such as what type of financing you need, the time you have to spend on the application and what your business can qualify for. Follow these stepsÂ
Define your priorities. Ask yourself questions to figure out what’s the most important to you. For example, are low rates more important than speed? Knowing what you want out of a lender is key to narrowing down your choices.
Compare types of lenders. Start your search by comparing different types of business financing and lenders to see which offer the type of financing you need — and which might accept your business.
Compare actual lenders. Rule out any lenders that don’t offer the rates, terms and loan amounts you’re looking for or any provider you definitely can’t qualify with.
Prequalify. Reach out to your top choices to get an estimate of the types of rates you might receive. With some lenders, you can prequalify by filling out an online form. Others might require a phone call.
Bottom line
Having excellent credit isn’t the only factor that lenders consider when you apply for a business loan. In fact, your time in business, revenue and cash flow often count more toward your application than your credit score. Get the basics on business financing with our guide to business loans.
Anna Serio was a lead editor at Finder, specializing in consumer and business financing. A trusted lending expert and former certified commercial loan officer, Anna's written and edited more than 1,000 articles on Finder to help Americans strengthen their financial literacy. Her expertise and analysis on personal, student, business and car loans has been featured in publications like Business Insider, CNBC and Nasdaq, and has appeared on NBC and KADN. Anna holds an MA in Middle Eastern studies from the American University of Beirut and a BA in Creative Writing from Macaulay Honors College at Hunter College, CUNY. See full bio
Anna's expertise
Anna has written 251 Finder guides across topics including:
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